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Applied Mathematics · 2026 · 3 marks

CBSE 2026 · Central · Set 4 · Q30

A company XYZ Ltd. has issued a bond having a face value of ₹ 10,000 paying annual dividend at 8.5% p.a. The bond will be redeemed at par at the end…

A company XYZ Ltd. has issued a bond having a face value of ₹ $\displaystyle 10,000$ paying annual dividend at $\displaystyle 8.5$% p.a. The bond will be redeemed at par at the end of $\displaystyle 10$ years. Find the purchase value of this bond, if the investor wishes a yield rate of $\displaystyle 8$%. [Given : $\displaystyle (1.08)^{-10}=0.46319349$]

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